Chap. 669.—An ACT to amend and re-enact section 17 of an act entitled an act
to provide for the assessment of taxes on persons, property, and incomes, and
on licenses to transact business, and imposing taxes thereon for the support
of government and public free schools and to pay the interest on the public
debt, and prescribing the mode of obtaining licenses to sell wine, ardent spirits,
malt liquors, or any mixture thereof, in cases where a court certificate is re-
quired, approved March 6, 1890.

Approved March 8, 1896.

1. Be it enacted by the general assembly of Virginia, That sec-
tion seventeen of the act entitled an act to provide for the assese-
ment of taxes on persons and property and incomes, and on licenses
to transact business, and imposing taxes thereon for the support of
government and public free schools and to pay the interest on the
public debt, and prescribing the mode of obtaining licenses to sell
wine, ardent spirits, malt liquors, or any mixture thereof, in cases
where a court certificate is required, approved March sixth, eighteen
hundred and ninety, be amended and re-enacted to read as follows—
namely:

8 17. Taxes on banks.—No tax shall be assessed upon the capital
of any bank or banking association organized under the authority
of this state or of the United States, but the stockholders in such
banks or banking associations shall be assessed and taxed on the
market value of their shares of stock therein at the same rate that
18 assessed upon other moneyed capital in the hands of individuals
residing in this state. Each bank or banking association aforesaid,
on the first day of February in each year, shall make up and return
to the commissioner of the revenue of the county, city, town, or dis-
trict in which said bank or banking association is located a report,
in which shall be given the names of the stockholders, the number
of shares owned or held or controlled by each, the market value of
said stock, and the stockholder’s residence. It shall be the duty of
said commissioner of the revenue, on or after the first day of February,
in each year, to assess each stockholder upon the shares of stock
estimated at the market value on said first day of February in each
year a tax of thirty cents on every hundred dollars’ value thereof ; the
proceeds of which shall be applied to the support of the government,
and a further tax of ten cents on every hundred dollars’ value thereof,
which shall be applied to the support of the public free schools of the
state and make out three assessment lists, give one to the bank or bank-
ing association aforesaid, located in his county, city, town, or dis-
trict, and one to the auditor of public accounts, and retain one. The
assessment list delivered to said bank or banking association shall
be notice to the bank or banking association of the tax assessed
against its stockholders, and each of them, and have the legal effect
and force of a summons upon suggestion formally issued and regu-
larly served. The tax assessed upon each stockholder in said bank
or banking association shall be the first lien upon the stock standing
in his name and upon the dividends due and to become due thereon,
no matter in whose possession found, and have priority over any and
all liens by deed of trust, mortgage, bill of sale or other assignment
made by the owner or holder, and take priority over all liens by ex-
ecution, garnishment or attachment process sued out by creditors of
the stockholder. The bank or banking association shall hold the
dividend or other fund which belongs to the stockholder and in its
custody at the time the assessment list is received, or that there-
after shall come under its control, for the use of the common-
wealth, and apply the same to the payment of the tax assessed, and
when thus applied shall be acquitted and discharged from all liabil-
ity to the stockholder for the money thus disbursed; provided that
atter making report to the commissioner of the revenue any bank or
banking institution, on or before the first day of June in each year,
which shall so elect, may pay the taxes assessed against the stock-
holders directly to the auditor of public accounts. But should said
bank or banking association fail to elect and pay into the treasury
the tax assessed against its stockholders on or before the first
day of June in each year, then as soon thereafter as practicable
the auditor of public accounts shall transmit to the treasurer of
the county or city in which said bank or banking association is
located a copy of the assessment list furnished him by the com-
missioner of the revenue, and it shall be said treasurer’s duty to
collect the taxes therein assessed, and to this end levy upon
the stock of the tax-payer, or so much thereof as is necessary
to pay said tax, and sell the same at public auction for cash,
as other chattels and personal property are sold under execution.
He shall give to the purchaser a bill of sale made under his hand and
seal. The bank or banking association in which such bank stock
stands on presentation by a purchaser of his bill of sale shall cause
the stock therein described to be transferred to said purchaser, and
he shall take a clear and unencumbered title to the stock purchased.
Should the taxes assessed against bank stockholders evidenced by
the bids aforesaid be not paid or collected as hereinbefore provided,
the lists aforesaid shall stand and be treated and have the legal
effect of tax-tickets regularly made out against each of said stock-
holders named in said lists as to which tax the right of levy and
distress had accrued to the commonwealth, and the treasurer shall
proceed to collect the same by levy or distress, and possess all and
singular the authority and power conferred upon him by law to col-
lect other state taxes, and be governed by sections six hundred and
twenty-two and six hundred and twenty-three of the code of Vir-
ginia. The bank or banking association which shall fail or neglect
to comply with each and every provision of this act for each sepa-
rate offence shall be fined not less than one hundred nor more than
five hundred dollars, which fine shall be recovered upon motion,
after five days’ notice, in the county, circuit, corporation or hustings
court of the county, city or district in which the said bank or bank-
ing association is located. Said motion shall be in the name of the
commonwealth and presented by the attorney for the commonwealth
of the court in which the motion is brought or made. The real
estate of all banks and banking associations shall be assessed on the
land books of the commissioners of the revenue with the same taxes
with which other real estate is assessed.
2. This act shall be in force from its passage.